Total Debt Servicing Ratio TDSR - Property Launches & Investments

Joint Press release on measures relating to residential property

Posted by Property Launch Invest on Monday, 13 March 2017 in Property News

1. The Government has continued to review conditions in the residential property market. It has determined that the current set of property market measures remain necessary to promote a sustainable residential property market and financial prudence among households. However, we will make calibrated adjustments to the Seller’s Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) framework, with effect from 11 March 2017.

An opportune time to ease cooling measures: analysts

Posted by Property Launch Invest on Saturday, 09 January 2016 in Property News

With the residential market stabilising, analysts believe that this could be an opportune time to tweak the property cooling measures.

Private resale home prices have fallen by around eight percent, while HDB resale prices have dropped by about 10 percent from their 2013 highs, reported Channel NewsAsia.

In fact, one analyst feels that a slowing economy could offer the best environment to ease some of the curbs without fear of market spikes.

Singapore private property prices could fall another 10% over next two years: BNP

Posted by Property Launch Invest on Thursday, 25 June 2015 in Property News

SINGAPORE - Private property prices in Singapore could fall a further 10 per cent from current levels over the next two years, French bank BNP Paribas said in a research report on Monday.

Although prices have fallen 5.5 per cent from their mid-2013 peak, BNP Paribas said that a "closer look at valuation metrics and underlying drivers" shows the market has further to correct before a bottom can be called.

Singapore property cooling measures could be reviewed at year-end: UOB

Posted by Property Launch Invest on Sunday, 21 June 2015 in Property News

THE Singapore government could potentially review its property cooling measures towards the end of this year, said UOB in a research note on Friday.

UOB said that a relaxation in seller's stamp duty (SSD) and selected reductions in additional buyer's stamp duty (ABSD) rates for Singaporeans may be likely, given the bank's expectation of a 5 to 10 per cent correction in housing prices this year.

Spike in luxury home mortgages

Posted by Property Launch Invest on Friday, 26 December 2014 in Property News

Colliers International Singapore Research revealed to TODAY that 98 private homes were arranged available to be gotten by banks inside the starting ten months of 2014 – five times the measure of homes set open to be purchased in 2013.

Likewise, non-landed private homes in clear private neighborhoods helped the current year's mortgagee posting, case in point, Reflections at Keppel Bay, Turquoise at Sentosa Cove, and Stevens Court at Stevens Road.

All the more great property holders are suspecting that it hard to back their reliably arranged divides and throw their properties, from now on instigating a sharp increase in mortgagee deals.

Ms Grace Ng, Deputy Managing Director of Colliers International said to TODAY, "in the midst of the stricter managerial and financing environment, borrowers in default are suspecting that it hard to offer their properties in isolation, as purchasers for the most part stay wary."

There has likewise been an expansion in neighborhood bank non-performing advances (NPL), as a postponed outcome of wonderful property holders defaulting on home credits.

Controllers remarked to TODAY that notwithstanding the way that the business has wound up unfavorable for untouchable property holders, the expansion in Npls could be an aftereffect of poor financial engineering going before the execution of the cooling measures – Total Debt Servicing Ratio (TDSR).

Source: ST Property

Cooling Measures Update

Posted by Property Launch Invest on Friday, 12 December 2014 in Property News

One conclusion that we can draw from the Cooling Measures is that placing limits on borrowing is more effective than levying stamp duty taxes at bringing Singapore property prices down.

According to the SRX Property Index for Private Resale Flats, the first Additional Buyers Stamp Duty (ABSD1) did little to impact both resale volume and prices.

Cooling property prices provide relief for Singapore banks

Posted by Property Launch Invest on Wednesday, 15 October 2014 in Property News

Falling property prices in Singapore - one the world's most expensive housing markets - have provided some much needed relief for the nation's banking sector, analysts told CNBC.

"The gradual decline in property prices is credit positive for Singapore banks because it relieves pressure on bank asset quality," Moody's analysts said in a note published Monday.

"Further price increases would have increased the risk of a real estate price bubble bursting," they added.

What You Should Know Before Refinancing

Posted by Property Launch Invest on Thursday, 09 October 2014 in Property News

Getting a new mortgage to replace the original is called refinancing. Refinancing is done to allow a borrower to obtain a different, and even better interest term and rate. The first loan is paid off, allowing the second loan to be created, instead of simply making a new mortgage and throwing out the original mortgage. For borrowers with a perfect credit history, refinancing can be a good way to convert a variable loan rate to a fixed, and obtain a lower interest rate. Borrowers with less than perfect, or even bad credit, or too much debt, refinancing can be risky.

In any economic climate, it can be difficult to make the payments on a home mortgage. Between possible high interest rates and an unstable economy, making mortgage payments may become tougher than you ever expected. Should you find yourself in this situation, it might be time to consider refinancing. The danger in refinancing lies in ignorance. Without the right knowledge it can actually hurt you to refinance, increasing your interest rate rather than lowering it. Below you will find some of this basic knowledge written in order to help you reach your best deal.

What Singaporeans Need to Know About Home Loan Refinancing in 2013

Posted by Property Launch Invest on Thursday, 09 October 2014 in Property News

Back in 2011, I was convinced banks installed revolving doors just for home loan customers. People refinanced more often than we got to change underwear in NS. It was an industry norm; you’d pick the cheapest loan for three years, and then refinance on the fourth. Now from 2013 onward, it might not be that easy…but you can still save money:

Buyers shun luxury city apartments despite price falls

Posted by Property Launch Invest on Monday, 15 September 2014 in Property News

Luxury apartment sales in the city centre sank markedly in the first half of 2014, revealed a CBRE report.

According to caveats data for the Core Central Region (CCR), there were 48 transactions of properties costing $5 million and above in the first six months of the year, compared to 78 and 107 deals in H2 2013 and H1 2013 respectively.

Why is it too soon to relax Singapore property measures

Posted by Property Launch Invest on Monday, 15 September 2014 in Property News

Prices have to fall by 10% first.

The sales drought will continue for Singapore’s residential developers, as the country’s stringent property cooling measures aren’t expected to ease anytime soon.

According to Barclays, the relaxation of property cooling measures would be premature, despite the continuous softening in property prices, even though year-to-date developer sales have declined 54% y/y.

HDB owners upgrading to private residential despite property cooling measures

Posted by Property Launch Invest on Thursday, 11 September 2014 in Property News

In the wake of property cooling measures developers have begun to offer higher percentage price discounts in an attempt to offload stock, making upgrading to condominium living a tempting option for HDB owners. Using 5-room HDB owners as a case study, we examine if now is the right time for HDB upgraders to cash out of their flats, and invest in the private condominium market. To measure the ease of upgrading by HDB owners, we looked at the upgrade premium, which is the difference between median HDB resale price per square feet (psf) and median condominium resale price psf of equivalent sizes, i.e. 100 - 120 sq m or 1,076 -1,292sqft for each quarter.

Singapore a global role model in property cooling: Bloomberg

Posted by Property Launch Invest on Wednesday, 10 September 2014 in Property News

Other countries can't handle their housing bubbles.

Singapore has lowered down housing prices by 3.7% over the past 12 months, as other cities like London, Manhattan and Sydney struggle to keep their housing prices from surging.

Bloomberg says that Singapore and Hong Kong did not even break a sweat as it reined in home prices by imposing measures including mortgage caps, taxes on property flippers, and levies on foreign buyers as high as 15%.

Impact of Singapore's property cooling measures on sales and prices

Posted by Property Launch Invest on Friday, 22 August 2014 in Property News

Recent cooling measures have clipped the wings of the once-soaring private property market in Singapore.

Tough measures such as a total debt servicing framework, which restricts a borrower’s monthly debt repayments to at most 60 per cent of his gross monthly income, has driven some buyers to aim for smaller homes with cheaper total prices.

Here's a look at how private home sales and prices have changed with each round of curbs.

Singapore Home Prices Set to Extend Declines, Keppel Land Says

Posted by Property Launch Invest on Wednesday, 13 August 2014 in Property News

Home prices in Singapore will probably extend declines as the government sticks with curbs, according to Keppel Land, signaling further losses for Asia’s second-most expensive housing market.

“Home prices are expected to continue to moderate,” chief executive Ang Wee Gee said at a results briefing on Wednesday. “Singapore is unlikely to relax property-cooling measures in the short term.”

Can Singapore safely deflate its property market?

Posted by Property Launch Invest on Tuesday, 12 August 2014 in Property News

Singapore's famously efficient government faces a challenge that has stymied many a country before: safely guiding its toppish property market to a soft landing as interest rates rise.

Property prices in the city-state have surged over 60 percent since 2009, propelled by rock-bottom global interest rates and quantitative easing in developed economies, even as Singapore's government has enacted a series of cooling measures to prevent a bubble from forming.

Singapore Central Bank Says Too Early to Ease Property Curbs

Posted by Property Launch Invest on Thursday, 07 August 2014 in Property News

Singapore's central bank said it’s too early to ease property restrictions after prices in Asia's second-most expensive housing market fell for three straight quarters.

Real estate prices “remain at elevated levels,” Ravi Menon, managing director of the Monetary Authority of Singapore, said at the release of its annual report today. “It’s very important that we secure the gains that we’ve made in stabilizing the market and restoring financial prudence.”

Singapore’s property stocks fell for the first time in eight days as the central bank signaled its determination to extend a campaign that began in 2009 and included tighter mortgage rules and extra taxes. Residential values in the island-state dropped for a third quarter in the three months through June, the longest losing streak in five years.

Taming Singapore's property market

Posted by Property Launch Invest on Thursday, 07 August 2014 in Property News

INITIAL reports of the property market's demise appear to have been slightly exaggerated.

After policymakers imposed strict curbs on consumer loans last June under total debt servicing ratio (TDSR) rules, analysts predicted that private home prices would plunge by up to 10 per cent this year.

Some warned that home sales could grind to a near halt, quipping that TDSR actually stood for "total destruction of Singapore real estate".

So far, however, the slowdown in prices has been far milder than expected.

Home prices seen dipping further for rest of 2014

Posted by Property Launch Invest on Thursday, 03 July 2014 in Property News

Market players attribute slide in private market to competitive prices by developers, softening rentals

[SINGAPORE] Amid the current supply-demand imbalance, the gradual decline in private home prices is set to continue for the rest of the year after three quarters of decreases, say property consultants.

Too early to relax property cooling measures, says MND

Posted by Property Launch Invest on Thursday, 03 July 2014 in Property News

It is still too early to roll back property cooling measures, according to the Ministry of National Development (MND) yesterday.

It said that although home sales have decreased, prices have remained relatively stable.

The moves to rein in property prices included extra stamp duties to curb speculative buying and the total debt servicing ratio framework which was introduced a year ago.

MND noted that private home prices had surged 60 per cent during the most recent market upswing that began in mid-2009.

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